Looks like we all might be going back to riding horses again. The good ol days! Automotive transportation looks bad for us. I feel sorry for the ones that do the hard work have to lose their jobs, but maybe those rich guys that head up everything could sell their big mansions and their Jets they have. Wonder how we are going to get parts for the cars and trucks we have now?
Yeah I heard on the news that they will decrease the number of production of cars because of the economic financial crisis. That means increase on the number of unemployment
They aren't asking for much money as compared to the fat cats in Wall Street and Main Street and spending that money can save millions from unemployment. Frankly speaking I feel that it is worth bailing out the auto industry rather than those banks and financial institutions.
I don't think it will get anything more expensive, GM and Chrysler had to beg to be rescued because they simply arent efficient enough compared to Toyota and Honda. Since they aren't efficient enough I doubt they can produce cars at a more attractive price than Toyota and Honda, Toyota especially with its famous kaizen and a CEO that can squeeze the tiniest bit of savings you can ever think of.
I hope the money they get is a loan cause its not fair to the rest of the people in america to pay for there mistakes.
If they can continue borrowing, they will have done so without having to face the shame of begging the Bush Administration for money. Problem is they cannot get any more funding for their loss making industry. With the financial crisis, this deepens their difficulty of securing funds. They have no choice but to approach the Bush Administration who will use the tax payers' money to bail the Auto industry out. The tax payers have no choice but to accept the decision I guess.....
THe UAW (United Auto Workers) need to bring their pay in line with what the employees of US based Japanese companies are making in places like North Carolina and Tennessee. The US companies also have double the car dealers than companies like Toyota and need to cut back on that end.
here is the same situation...some auto works are cutting down the production, the employees are taken vacations or short hours...the car dealers have huge stocks of cars and the sales seem like they are not going to be satisfying either in the future.
why do i have to be riding a horse? i don't own an american car, i own a japanese car sorry. Although I feel bad for the workers, the big 3 deserve to file chapter 11 because they mismanaged
GM and Chrysler are both getting bailouts. The money should last a few months and basically is going down the drain. GM will get $4 billion by Dec. 29, $5.4 billion by Jan. 16 and the final $4 billion by Feb. 17, provided Congress releases the second $350 billion of the $700 billion allocated for TARP. Chrysler would get $4 billion by Dec. 29. http://www.bloomberg.com/apps/news?pid=20601087&sid=acnCyu4KZjI4&refer=home
So what will happen after the few months is over. I guess the next round, the CEOs wouldn't be flying back in their private jets to ask for more bailouts. They may be flying economy class........
Maybe the executives should think about emulating their Japanese counterparts as well? (how awesome is it that even big time news sites aren't dating their articles now) It'd be nice if the American auto companies came up with some mutual agreement to try to cap exec salaries, but that'll happen on cold day in hell. I know the disproportionate worker salaries probably strain the businesses more in absolute terms than the disproportionate pay of the execs, but every little bit helps and a gesture that 'we're in this together' could actually help boost the morale and resolve of everyone involved to turn things around. I know if I was smart and capable enough to do it I'd probably head one of the companies for a few million instead of a gazillion million, if only out of national pride. There's no good reason American auto companies shouldn't be on top, if not at least sharing the crown with the Japanese.
US workers salaries combined with medical and vacation are close to the US based Japanese workers. An adjustment of around $10 combined an hour will bring them in line. The problem is the legacy penion benefits that cost $30 per hour. The US car companies on average have two retirees for each worker and the costs are putting them ut of business.
They can't sustain. I don't think even Obama administration will keep pumping money into the auto industries no matter how much the trade unions support Obama. I guess they are still in favor of a orderly bankruptcy. The auto industries bring this upon themselves by being bloated and inefficient. Imagine the likes of Toyota, which cut costs to the bone loses money. GM and Chrysler do not even stand the slightest chance of escaping bankruptcy this time.
United Auto Workers are very powerful amd there is still $350 billion in tarp funds. I expect that they get the funds. GM financial is also receiving bailout funds.
The root cause of all the problems is mis-management. It is only that the present times are tough, these irregularities have come to the fore. If government really had a choice, they would have certainly stayed away from supporting such inefficiencies...To bail them out, is a sheer waste of capital... Regards, RightMan
All the bailouts are a waste. The US already has bailed out AIG twice and now they need another bailout.
Bogart, frankly speaking I do not understand. Judging from a commercial or business perspective, this is suicide. I would guess any accountant will dismiss GM and Chrysler as sank costs, you do not throw good money after the bad. There are many other ways of helping the workers even if GM and Chrysler collapses. The theory that such collapses may trigger other related industries to collapse may be true. But the automobile companies aren't sustainable, it is just a matter of time. I am more of a proponent of free economy. I do not believe government intervention will be effective. The end losers will be the tax payers and they will be losing big time.
GM will be making the Volt electric car in 2010. The technology looks promising. With tax credits for a small electric car GM could survive. Chrysler is in bad shape and probably shouldn't be bailed out. http://www.usatoday.com/money/autos/2007-09-30-gm-volt_N.htm